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I've seen companies doing this, and without fail, I see the increase of bad customer service. First of all coming from people who can barely speak the language people are calling in with. Second, More often than not, the level 1 guys (the most off-shored), barely know what they're doing and have a script that the never deviate from, and is rarely of any help.
It's things like this that cost major corps huge sums of money. They 'save' by offshoring, but then have to pay out gross amounts because they cannot meet the SLA's that they guarantee, because the offshored talent is all but useless.